Correlation Between Autolus Therapeutics and ADC Therapeutics

Can any of the company-specific risk be diversified away by investing in both Autolus Therapeutics and ADC Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Autolus Therapeutics and ADC Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Autolus Therapeutics and ADC Therapeutics SA, you can compare the effects of market volatilities on Autolus Therapeutics and ADC Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Autolus Therapeutics with a short position of ADC Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autolus Therapeutics and ADC Therapeutics.

Diversification Opportunities for Autolus Therapeutics and ADC Therapeutics

-0.45

Correlation Coefficient

Autolus Therapeutics  ADC Therapeutics

Very good diversification

The 3 months correlation between Autolus and ADC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Autolus Therapeutics and ADC Therapeutics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADC Therapeutics and Autolus Therapeutics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Autolus Therapeutics are associated (or correlated) with ADC Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADC Therapeutics has no effect on the direction of Autolus Therapeutics i.e., Autolus Therapeutics and ADC Therapeutics go up and down completely randomly.

Pair Corralation between Autolus Therapeutics and ADC Therapeutics

Given the investment horizon of 90 days Autolus Therapeutics is expected to under-perform the ADC Therapeutics. In addition to that, Autolus Therapeutics is 1.37 times more volatile than ADC Therapeutics SA. It trades about -0.1 of its total potential returns per unit of risk. ADC Therapeutics SA is currently generating about 0.22 per unit of volatility. If you would invest  273.00  in ADC Therapeutics SA on August 3, 2025 and sell it today you would earn a total of  173.00  from holding ADC Therapeutics SA or generate 63.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Autolus Therapeutics  vs.  ADC Therapeutics SA

Autolus Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Autolus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in December 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

ADC Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ADC Therapeutics SA are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, ADC Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Autolus Therapeutics and ADC Therapeutics

The main advantage of trading using opposite Autolus Therapeutics and ADC Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autolus Therapeutics position performs unexpectedly, ADC Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ADC Therapeutics will offset losses from the drop in ADC Therapeutics' long position.

The idea behind Autolus Therapeutics and ADC Therapeutics SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.